Acrewood Daycare on Grosvenor Road, which is part owned by Hannahstown Parish priest Father Patrick Devlin, was recently condemned after six staff members lost their jobs on less than a weeks notice and families were told their children could no longer attend the night before they were due to.
Staff received messages on Wednesday, May 13, telling them to fill in RP1 Forms, normally associated with businesses becoming insolvent, to claim redundancy and any unpaid wages.
It is understood that parents who have paid for daycare services will not receive any refunds as the "business has no capital and the parents will be treated as creditors".
Staff also face having to wait eight weeks in order to receive their unpaid wages and redundancy.
Belfast Live has seen a message sent by Acrewood Daycare management to former staff that said: "I spoke to the accountants that are dealing with Acrewood. He said they are going insolvent and parents would just be recorded as a creditor to the company.
He said that there is no capital and creditors would not be getting their money including parents."
Former staff owed £1,400 and wages, don't have eight weeks to wait. They have said they have had to contact Universal Credit in order to get help as they have nothing to live on and borrow money off friends.
One told Belfast Live: "I am in shock, I don't know what to do. I cannot believe that we have been treated like this."
On April 30, 15 families who had children attending daycare at Acrewood received an email a couple of hours after they had collected their kids from the premises saying they would not be able to return the following day, with no word about refunds they would be owed.
At the same time six members of staff were "made redundant" suddenly with no information about when they would receive wages they were owed.
The actions were condemned by parents, former staff and local politicians, with West Belfast People Before Profit MLA Gerry Carroll saying that the daycares management owes them a firm explanation about what has gone on.